Costco gas prices continue to fall

HONOLULU (KHNL) - Most drivers have noticed a big drop in the price of gas, especially at Costco in Iwilei where a gallon of unleaded today is 3-dollars and 11-cents.

There is a trade-off. Retailers like the 76 station at Sand Island, have gas prices more than 50 cents higher than Costco. But drivers can spend less time at the pumps and at more convenient locations.

It's a welcome sight. Gas prices all over town dipping below 4-dollars a gallon, but the sign turning most heads, is at Costco in Iwilei.

"The reason why Costco is able to buy at such a low price because the economy has slowed down and so the demand has slowed down," says Kahala Shell Consultant Bill Green.

Bill Green has been operating the Kahala Shell Station and finds nothing shocking about a wholesaler offering a better price especially during bad economic times.

Depending on where you live, whether or not you're a Costco member, and how valuable your time is, will determine how big your savings will be.

"I didn't realize that it was that much cheaper, but time is money. To go down there it takes a lot more time than just coming here," says Driver Joe Mazzullo.

"It only took like less than 15 minutes," says Driver Alan Akama.

While Bill Green believes Costco is simply taking advantage of a situation, he also feels it's just a matter of time when all retailers will be able to offer more competitive prices.

"When it bottoms out then that price will get back to about, usually about 12-14 cents is the normal spread between the market and Costco."

For now, smaller stations hope people will pull up to their tanks for the full service Costco doesn't offer.

On the neighbor islands Costco gas prices also dropped over the past few days. In Kona a gallon of unleaded is 3.21 and on Kauai it's 3.45